Valyooo (98.42)

Give me one reason not to buy silver calls

9

I am staring at january 2013 silver calls, 25 dollar strike. They are 5.85. The 2012 ones are 4.35 Talks of QE3 and QE4 and bush tax cuts are under way. Somebody pleeeeease tell me why I shouldnt buy the hell out of these before I do it.

Because the silver market has been cornered before? Viz, Hunt Bros, 1982. It's been done since then by others. You don't know who's selling those calls. It might be someone with the ability to depress the price on the maturity date. The silver market is not very big and someone with a few billion to throw around can make it march to their tune.

I only have $3200. I dont want to allocate more than 25% to silver. I own BRF, MTB, and GPRLF.PK. GPRLF is the one I am considering switching to calls. The fourth position of mine is either gonna be for trades, or for phillip morris (or an enery stock, most likely PM). SLW calls seems soooo good though. I am already up like 35% on my great panther

Because gold and silver are too popular to be right, for right now. However, the fundamentals clearly are there (U.S. deficit, dollar collapse, etc.). What I think happens is a pretty decent correction (not yet of course but within a month) which might last for a while, until all the people calling gold a bubble say they have been proven right, and then we would see the real move in metals!

Those same calls can be purchased for a lot less in maybe 6 or 7 months, which if i can restrain myself from buying too soon, is my plan. I do believe there will be a bubble in the metals eventually, but I don't think we are there yet.

silver should be at 14 - 1 ratio with gold..right now its 60-1 or close to that figure 60-70 to 1. Historically youed be right to buy silver but you'd be wrong to enter a market that you canot see and clairity and a market were banks like JP and Goldman can supress the market...They can do this and have been doing so for some time now....I would buy Silver bars and coins not calls or etfs..If you caint tuch it its not real when it come to gold and silver...but that may just be me.

From a buddy of mine-

"Hi everyone!!

> If you can buy some silver do it! the ratio is 60-70oz silver to 1

> oz gold at current market rates. Historically silver has always been

> to 14 to 1 ratio, (14 ounces of silver would buy you one ounce of

> Gold) and soon silver will correct itself back to the 14-1 ratio (over

> $100oz) making silver more expensive. Gold and silver values are not

> representative of current inflation rates either, both of witch are

> grossly devalued, and more importantly silver is being suppressed by